MercoPress. South Atlantic News Agency

Reserves external auditing for oil companies in Argentina

Oil and gas companies operating in Argentina must have their reserves annually certified by external auditors, announced the Argentine government.

The Energy Ministry's decree, published Monday in the Official Bulletin, follows "differences observed" between declared reserves by oil and gas companies and those certified by external auditors.

So far the companies only had to report reserves every two years without any need of external auditors to support the data.

"The correct and on time information on existing hydrocarbons reserves and resources in the country constitute a basic element" for government supervision of the industry adds the decree which is extensive to some thirty companies operating in Argentina.

The country's main oil and natural gas producer, Spain's Repsol YPF last January was forced to down review its reserves worldwide following an observation from the New York Stock Exchange auditing system.

Argentina, which is estimated to have about eight and half years of reserves, experienced a 5% year-to-year drop in oil production in 2005, and a 1.4% decrease in natural gas extraction.